: Industrial Projects - 2. : 26th October, 2016

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3 1. Proposal No. : IA/AP/IND/26243/2014, 2. MoEFCC File No. : J-11011/408/2014-IA II (I) 3. Category of the Proposal : Industrial Projects Name of the proposal : M/s Divis laboratories limited, Unit 4, Ontimamidi Village, Thondangi Mandal, East Godavari dist., AP 5. Date of EAC Meeting for EC : 26th October, Minutes of EAC : 28 th November, 2016 To : The Chairman and All members of EAC At the outset, we as a Project Proponent (PP) thank you all members for giving us an opportunity to make a presentation on the setting up of our new API unit, by meeting Global manufacturing practices in pharma sector by adopting all modern facilities for compliances to continue to achieve the high level of manufacturing for export of products. During the discussion on the subject, The EAC Committee members has asked us as a PP to clarify and also submit details for their records. Accordingly, we as the PP has clarified further that the Unit is proposing to utilize minimum possible surface water and also give commitment to study area development through our funds. The Government of Andhra Pradesh (GOAP) has sanctioned our project through State Investment Promotion Board(SIPB) Vide Go Ms No 46 dated 15th July, The cabinet approved the investment and issued orders to allocate land, electricity, Water by Irrigation Department etc. The SIPC has recommended our request through Irrigation department that the final phase total need of 6.5 MLD water can be supplied and ordered the department to expedite the permission to supply to the company.

4 1. Revised water balance chart with special emphasis on water Recycling and Reuse. The total water requirement for the proposed project is 6500 KLD, out of which fresh water requirement is 4300 KLD and treated (reuse) water is 2200 KLD. The sources of the fresh water are Jammeruvagu, Samarlakota canal and Thandava River in phase -1 and alternate sources are Pumpa and Eleswaram canal will be allocated based on the completion of works. Fresh water will be used in the process (1690 KLD), reactor and floor washing (450 KLD), boiler (870 KLD), cooling tower (1200 KLD), domestic needs (170 KLD), hostel (400 KLD) and green belt (800 KLD). Treated water will be used in the reactor and floor washing (100 KLD), cooling tower (1000 KLD), domestic needs flushing (50 KLD), hostels flushing (130 KLD), green belt (920 KLD). The domestic waste water coming from domestic needs and hostel will be treated in sewage treatment plant (Capacity 600 KLD) and treated water will be reused. The high TDS waste water coming form process activities containing high BOD, COD will be treated in Multiple Effect Evaporator (MEE) followed by Agitated Thin Film Dryer (ATFD). The salts from ATFD will be sent to TSDF for further treatment and disposal. Waste water coming from reactor, floor washing, low TDS from process activities and condensate from MEE plant will be treated in Effluent Treatment Plant (ETP 1) consisting of two stage aeration system. Waste water from boiler, cooling tower and treated water from ETP 1 will be sent to Reverse Osmosis (RO) for further treatment. RO permeate will be reused for boiler, green belt, cooling tower, etc. The reject from RO will be sent to guard pond followed by sea disposal. High TDS waste water containing sodium salts will be treated in ETP 2 by chemical oxidation and/or aeration and treated water will be sent to guard pond followed by sea disposal. Waste water which are rich in contents acid/ solvents are disposed to authorized agents. The detailed revised water balance diagram is given as Figure 1 in attachment and water balance table is given as Table 1.

5 Description Water Requirement in KLD Waste Fresh Treated Total Loss Water in KLD Low TDS ETP High TDS Remarks Process Acid / Mixed Solvent for Reactor, Floor Washing etc Table 1 Water requirement and Waste water generation Sales 98 Equalization/neutralisatio n - Stripper/MEE/ ATFD 857 Equalization cum Neutralization / Aeration / Guard Pond & Sea disposal 810 Equalization cum 88 Neutralization / Aeration ,RO Partial reused & excess discharged into sea Boiler Cooling Tower Domestic Needs STP, Green Belt Hostels Green Belt Total ( Treated Water ) As suggested by the Committee, using of RO plants for supplying treated domestic water for villagers, low TDS ground water sources will be identified in the village by carrying out detailed water sources identification and analysis of water sample. The low TDS ground waters will be disinfected using chlorine /ozone / ultra-filtration etc. The treated water will be supplied to the villagers as per their requirement. Further, we requested our supply vendor M/S Tata Projects to work out alternative mode of providing safe drinking water to nearby villages with appropriate technologies for safe drinking water supply. They agreed to provide the solution by the earliest to enable us to implement new technology. In addition, our core Technology and engineering team will be evaluating other technologies available for appropriate to serve villages around coastal areas. The company will

6 ensure appropriate alternative technology for safe water and sewerage system for disposal in nearby villages. 2. Provide Action Plan to be drawn at the rate of 5% of project cost under ESR activities. The committee members and chairman have asked us as a PP to spell out the activities relating to "ensuring environmental sustainability", the environment clearance given to a project may involve a situation where the concerned company is yet to make any net profit and / or is not covered under the purview of the company Act and Rules. It has been suggested by the committee during the above appraisal meeting, in respect of valid concerns expressed during the public consultations, mitigation issues emerging from social impact etc., the project proponents, should clearly state the activities involved in the phasing of these activities. In case, these activities are proposed to be covered by the project proponent under its activities, the project proponent should commit providing for the same. In either case, the position regarding the agreed activities in the phasing should be clearly reflected. As suggested by the committee, the obligation on part of above, we are proposing the total capital cost of Rs 600 crores will be implemented in 3 phases as per the progress of handing over of land and subsequent statutory approvals by the state. During initial phase, all internal and external infrastructure will be developed in the site, based on approvals obtained from various agencies like DTCP, PCPIR, APIIC, etc of the state government of Andhra Pradesh. As suggested by the Committee, an amount of Rs 600 lakhs is allotted towards sustainability measures during the construction of Phase 1 (5% Of 120 crores) and remaining amount of capital cost of Rs 480 crores and 5 % of that amount will be used in accordance with progress of project work in Phase 2and 3 on proportionate basis as per the guidelines of GOI. The Action Plan for implementing various works on immediate basis for Phase-1 is given in table with details. This proposed amount will be used for taking up developmental activities in and around the project area mainly covering study area of 10 km radius and rest of the areas in District during the construction stage itself. However, the year wise phasing gets change as per the need arises in villages, as appropriately. Also, the project proponent company is a listed and regulated public limited company for all its activities, hence any commitment or variations will be carried out as per rules in vogue for same.

7 Table 2 Budgetary allocations for the proposed activities during project construction Phase-1 S.No Item First Second Amount (Rs Lakhs) Third Fourth Fifth 1 Promoting basic /secondary Education Natural calamities infra/fishermen welfare Preventing measures in health care/health camps Setup skill development center in cluster Empowering women and disadvantaged G Swatch Bharat/Govt support programs Safe drinking water and community facilities Village development and infrastructure Environmental sustainability Roads, Street lights, etc Total Sub Total As per the company s policy, this allotted amount will spend as per the directions given by committee of the company constituted as per the company law. Some of the possible areas of activities under various sustainable measures are as mentioned below. They will be undertaken depending on the local requirement and its immediate need. Safe Drinking Water Facility Education, Health and Family Welfare Electricity Facility and Solar Lighting System, Non-conventional Energy Sources Irrigation Facilities, Sanitation and Public Health Animal Care and Environment Friendly technologies Promotion of Sports and Games, Promotion of Art and Culture Promotion of livelihood for economically weaker sections through forward and backward linkages. Relief to victims of Natural Calamities like earth-quake, cyclone, drought & Flood situation in any part of the country Supplementing Development Programs of the Government Construction of Community Centers/Night Shelters/Old Age Homes Imparting Vocational Training and Setting up of skill development centers, Entrepreneurship Development Program (EDP) Adoption and development of Villages

8 Scholarships to meritorious students belonging to economically weaker sections and disabled categories Adoption/Construction of Hostels (especially those for disadvantaged sections ) Skill training, entrepreneurship development and placement assistance programs Building of Roads, Pathways and Bridges Disaster Management Activities including those related to amelioration /mitigation Activities related to the preservation of the Environment/Ecology and to sustainable Development Monitoring of the sustainable measures and such projects is very crucial and needs to be a periodic activity of monitoring by project officials. The following rules will be framed for projects monitoring. The Board of Directors would discuss the implementation of above activities in the management committee meetings. A separate paragraph/chapter will be included in the annual report on the implementation of activities/projects including the facts relating to physical and financial progress.

9 Water balance flow chart Note: All values are in KLD Total Water 6500 Fresh Water Treated 2200 Water Solvents/ Raw Materials/ Acids Process 1690 Reactor, Floor Washing etc. 450 Boiler 870 Cooling Tower 1200 Domestic Needs 170 Hostels 400 Green Belt 1720 High TDS Low TDS Effluent Treatment Plant (Chemical Oxidization/Aerations) Acid/Mix Solvent MEE/ ATFD 80 Effluent Treatment Plant Reverse Osmosis Sewage Treatment Plant 2 Stage Aerations Sales Salts to TSDF Sea Disposal 1800 RO Reject RO Permeate